Why Tesla Isn’t Just a Car Company

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Midas Letter

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Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

We all know Tesla Inc (NASDAQ:TSLA) to be Elon Musk’s innovative electric vehicle company responsible for a large consumer shift away from gas guzzling automobiles. Although this is very true and represented by the company’s meteoric stock valuation (over $390 Billion) in the last couple of years, there is plenty more to the story.

In recent news, Tesla is bypassing the entire mining sector and are developing their own battery chemical supply chains. To facilitate this, the now “alternative energy” company is building a lithium hydroxide refinery plant in Texas. The chemical plant will convert spodumene ore into lithium hydroxide – a process key to Elon Musk’s battery cell production plan.

This news has been revealed parallel to Tesla signing a five-year deal to acquire spodumene from a mine in North Carolina. This deal will enable Tesla to make 8,000 tonnes of lithium hydroxide per year, starting between July 2022 and July 2023.

The new battery cell technology process will allow Teslas vehicles to use fewer batteries and will ultimately drive down manufacturing costs.

“We’re not getting into the [battery] cell business just for the hell of it. It’s because it’s the fundamental constraint. It’s the thing that is the limiting factor for rapid growth.” – Elon Musk

Investors are liking the bigger plan for the company as Tesla diversifies into clean energy plays.

Watch the full interview to understand why an investment in Tesla is more than just an investment into a profitable car company.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.